Industries in Uganda have grown from 80 to over 9000 as sector calls for policy reforms and incentives
The Minister of Trade, Francis Mwebesa, has reiterated the government’s commitment to strengthening Uganda’s manufacturing sector, calling for greater collaboration between policymakers, investors, and industry players to unlock the sector’s full potential.
Mwebesa highlighted the pivotal role of industrialization in driving economic growth and achieving the ambitious goals set out in the National Development Plan (NDP IV).
He highlighted the remarkable expansion of Uganda’s manufacturing sector over the years,from just 80 industries in 1986, to more than 9,000 industries, contributing significantly to the country’s economy. The manufacturing sector contributes 16.5% to the country’s GDP, 30% towards tax revenue collection, and employing over 3M Ugandans.
This was during a high-level budget dialogue organized by the Uganda Manufacturers Association (UMA) that ran under the theme “Transformative Policies for Sustainable Industrial Growth.”
He, however, noted that despite these achievements, the sector is operating at only 53.4% of its installed capacity, signalling immense untapped potential.
Eddie Senkumba, the UMA Board Vice Chairman, acknowledged the concerns raised and re-affirmed the pressing need for policy reforms and incentives that promote local production. “There is a clear call for improved access to energy, more efficient infrastructure, and a favourable tax environment to ensure that our industry thrives and remains globally competitive,” he said.
Some of the challenges, he said, include access to affordable financing and reducing the cost of doing business to regulatory compliance. These issues resonate deeply with every manufacturer—large, medium, or small—across Uganda,” Senkumba added.
Well captured.